Bank of England Governor: Libra Could Solve Financial Problems

Mark Carney, governor of the Bank of England, has said that even though it is pretty obvious that Facebook's crypto project has its downsides, people must acknowledge that its ultimate goal is to solve current financial problems.

During a press conference in which the governor was talking about the Financial Stability Report of the bank, he said:

"It’s way too expensive to do domestic payments. It’s way too slow, and that hurts consumers and businesses. It stifles innovation, and it’s far too expensive to send money cross-border, and there are huge financial inclusion issues related to that and costs related to that. So, while we are trying to address all these issues, we have to absolutely acknowledge the problem that they’re trying to solve. And if it’s not this, we’d better have some answers for what else it is."

However, the bank's governor has said that since Facebook wants to launch its crypto internationally, the coin must be perfect in every aspect from the very beginning with regards to financial security. He believes that Libra's users cannot lose their money due to technical or security problems. Facebook must make sure about that.

Carney has added that, before Libra is released, the social network must study carefully and address other aspects such as basic risk, risk rebalancing, management of underlying assets, facilitating the fight against money laundering and terrorism.

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